What’s the Difference Between Personal and Commercial Auto Insurance?

How personal and commercial auto coverage differs.

If your work operations require the use of company or personal vehicles, then you need the protection offered by commercial auto insurance.  But why do business owners need to secure commercial auto policies, and how are they different than personal policies?  Here’s what you need to know.

In actuality, personal and commercial auto insurance are not that different.  In fact, both types of insurance essentially offer the same types of coverage.  For instance, personal and commercial auto policies both offer coverage for collision, comprehensive, liability, and so on.

The main difference between these two forms of insurance is the amount of liability coverage each offers.  Because businesses have more assets and face a higher risk for liability lawsuits than individual drivers, commercial auto insurance policies have much higher liability coverage limits than personal policies.  Additionally, commercial policies are also equipped to cover a wider array of vehicles, such as delivery vans, shipping trucks, as well as standard cars.

There is also a special form of commercial auto insurance designed to cover heavy-duty vehicles.  Because heavy vehicles cause more damage in an accident than light vehicles, they need higher liability coverage limits.  So, if your business owns things like minibuses, cement mixers, semi-trucks, tow-trucks, and so on, then talk with your commercial insurance provider to make sure you have the right amount of coverage.

Commercial auto policies are also more expensive than personal car insurance.  This is because businesses face more driving risks and require higher liability coverage limits.  Naturally, more coverage means higher rates.  Commercial auto policies are also more expensive than personal ones because there are usually more drivers and vehicles insured under the policy.

This is what you need to know about the difference between personal and commercial auto insurance.  Do you need help securing coverage for your company vehicles?  If so, then contact the experts at James Page Insurance.  We are ready to assist you with all your business insurance needs today.